Research on the Collusion and Competition in Oligopolies Through Game Theory Perspective: A Study on Coca-Cola vs. PepsiCo

Zhiyu Li

2025

Abstract

Employing game theory frameworks, this study systematically examines the mechanics of competition and collusion within the Oligopoly market, particularly referring to Coca-Cola and PepsiCo as a case study. Using 2015-2023 pricing data. Specifically addressing: (1) tacit collusion mechanisms (2) strategic differentiation (3) innovation incentives. The analysis will be conducted through the lens of game theory to monitor and understand how two prestigious players operate and respond to achieve market efficiency. In addition, the paper showcased the differences and similarities between the two players, further providing insight into what had shaped their current situation. Building on these insights, strategic recommendations have been provided to depict how collaborations can foster more sustainable development and growth for this duopoly. It highlights how tacit collusion and strategic interdependence shape market outcomes, providing a framework for analyzing similar industries (e.g., technology, aviation). The study also underscores the fragility of collusion under external pressures, offering insights for policymakers regarding antitrust regulation and market efficiency. This has practical implications for corporate strategy, suggesting that duopolistic firms can benefit from differentiated positioning to mitigate direct competition.

Paper Citation

in Harvard Style

Li Z. (2025). Research on the Collusion and Competition in Oligopolies Through Game Theory Perspective: A Study on Coca-Cola vs. PepsiCo. In Proceedings of the 2nd International Conference on Innovations in Applied Mathematics, Physics, and Astronomy - Volume 1: IAMPA; ISBN 978-989-758-774-0, SciTePress, pages 213-218. DOI: 10.5220/0013822400004708

in Bibtex Style

@conference{iampa25,
author={Zhiyu Li},
title={Research on the Collusion and Competition in Oligopolies Through Game Theory Perspective: A Study on Coca-Cola vs. PepsiCo},
booktitle={Proceedings of the 2nd International Conference on Innovations in Applied Mathematics, Physics, and Astronomy - Volume 1: IAMPA},
year={2025},
pages={213-218},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013822400004708},
isbn={978-989-758-774-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Innovations in Applied Mathematics, Physics, and Astronomy - Volume 1: IAMPA
TI - Research on the Collusion and Competition in Oligopolies Through Game Theory Perspective: A Study on Coca-Cola vs. PepsiCo
SN - 978-989-758-774-0
AU - Li Z.
PY - 2025
SP - 213
EP - 218
DO - 10.5220/0013822400004708
PB - SciTePress